FATFISH GROUP LIMITED — Capital/Financing Update 2017

May 15, 2017

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Fatfish Internet Group Ltd (ACN 004 080 460) Level 4, 91 William Street Melbourne VIC 3000 Australia

www.fatfish.co

16 May 2017

RENOUNCEABLE PRO-RATA RIGHTS ISSUE

Fatfish Internet Group Ltd (ABN 88 004 080 460) (ASX:FFG) ( Company ) is today announcing a renounceable pro-rata rights issue ( Rights Issue ).

The Rights Issue will offer eligible FFG shareholders the opportunity to apply for 1 new ordinary share ( New Share ) for every existing ordinary share held at an offer price of A$0.01 per New Share and for every New Share issued, the Company will issue one free attaching option with an exercise price of $0.011 exercisable on or before Sunday 9 June 2019 ( New Option ) (together, Entitlement ).

Compared to the weighted average price of the Company's shares on the ASX in the five trading days up to and including 15 May 2017, of $0.029, the offer price for each New Share represents a discount of approximately 65.52%. Compared to the closing price of the Company's shares on the ASX on 15 May 2017 of $0.025, the offer price represents a discount of approximately 60%.

It is anticipated that up to 169,299,446 New Shares may be issued pursuant to the Rights Issue, which would raise approximately A$1.69 million before expenses.

The Rights Issue is not underwritten.

Funds raised under the Rights Issue will be used to strengthen the Company’s balance sheet, to make new investments into Internet businesses in the Australasia region and to fund general working capital.

The Company will continue to invest in and nurture its current portfolio of Internet businesses. Simultaneously, it will continue to seek new investment opportunities in Internet businesses across Southeast Asia and Australia. The Directors consider that the Internet industry continues to grow strongly in Asia and Australia, contributing to the rise of a generation of Internet businesses that may have a disruptive effect on traditional business sectors.

Eligibility

Shareholders holding FFG shares as at 7.00pm (Sydney time) on Friday 19 May 2017 ( Record Date ) will be entitled to accept all or part of their Entitlement or none at all. Entitlements of Eligible Shareholders which are not taken up will form part of the

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Shortfall. Eligible Shareholders are also invited to apply for additional New Securities which will be allocated from any Shortfall.

The Rights Issue is open to all FFG shareholders as at the Record Date.

Prospectus

The Rights Issue is offered pursuant to the enclosed Prospectus.

The Prospectus and Entitlement and Acceptance Forms will be sent to eligible FFG shareholders on or about Wednesday 24 May 2017.

Any person considering acquiring New Securities under the Offer should read the Prospectus carefully.

Closing Date and Allotment

Applications under the Rights Issue must be received by FFG's share registry by no later than 5.00pm (Sydney time) on Friday 2 June 2017.

It is anticipated that allotment of the New Shares will occur on Friday 9 June 2017 and despatch of holding statements will take place on Thursday 15 June 2017.

The Company will seek quotation on the ASX of the New Shares issued pursuant to the Prospectus.

Effect on Capital Structure

The Company currently has 169,299,446 shares on issue. The maximum number of securities that may be issued under the Offer is 169,299,446 New Shares and 169,299,446 New Options. New Shares issued under the Offer will rank equally with existing shares. The Company will apply for official quotation on ASX of the New Shares issued under the Offer.

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Shortfall

There is no minimum acceptance amount and Eligible Shareholders are also invited to apply for additional New Shares which will be allocated from any Shortfall. The Directors may at their discretion place any Shortfall to third parties, at not less than the issue price within 3 months of the Closing Date.

Timetable

The following timetable is indicative only. All dates are subject to change and accordingly are indicative only. The Company has the right to vary the dates of the Offer, without prior notice, subject to the Corporations Act and the ASX Listing Rules.

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----- Start of picture text ----- Event DateLodgement of Prospectus with ASIC and Tuesday 16 May 2017announcement of OfferExisting Shares quoted 'ex' rights Thursday 18 May 2017Rights trading commences Thursday 18 May 2017Record Date 7.00pm (Sydney time) onFriday 19 May 2017Opening date of the Offer Wednesday 24 May 2017Rights trading ends Friday 26 May 2017Deferred settlement trading commences Monday 29 May 2017Closing date of the Rights Issue 5.00pm (Sydney time) onFriday 2 June 2017Deferred settlement trading ends Friday 9 June 2017Allotment of New Securities pursuant to the Rights Friday 9 June 2017IssueNew Securities allotted pursuant to the Rights Issue Tuesday 13 June 2017expected to commence trading on ASXDespatch of holding statements Thursday 15 June 2017Last day by which Shortfall Securities (if any) may Friday 2 September 2017be issued----- End of picture text -----

All future dates specified in this announcement are indicative and may be subject to change.

– ENDS –

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About Fatfish Internet Group

Fatfish Internet Group Ltd (‘ASX:FFG’) is a Southeast Asian and Australian based Internet venture accelerator. FFG partners with entrepreneurs to help them build and grow Internet businesses via a co-entrepreneurship model.

FFG’s co-entrepreneurship model provides a collection of resources and expertise at group level to start-up companies. This model provides entrepreneurs with support in important areas such as business strategy, staffing, exit strategy and product development services.

By utilising this pragmatic model FFG becomes a strategic corporate partner that provides the funding, resources and invaluable networks to hasten the growth of promising technology businesses. FFG is actively involved from seed funding stage to exit stage.

Company History

FFG was founded in 2011 in Singapore at the famed “Block 71” start-ups cluster by a team of co-founders that are serial entrepreneurs. All have successful track records in the Internet industry. FFG has dual headquarters located in Singapore and Melbourne, Australia. FFG also operates 2 regional “launch-pad” offices in Malaysia and Indonesia.

FFG is publicly traded on the Australian Stock Exchange (ASX) with its trading symbol “FFG”. The Company listed in July 2014 and is the first Internet accelerator to be traded on the Exchange.

For further question on this release, please contact:

Investor Relations Team

ir@fatfish.co

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